The market has a tendency to change its character as time changes. CY 2022 turned out to be a great reset year – when momentum strategy and the momentum stocks got hammered beyond recognition. Now a new set of stocks seem to be emerging from the ashes to take on the leadership role. Here is a small list of Large-cap stocks with attractive charts and this is the list one should focus on for 2023.
The Dream stock of 2022: First Solar FSLR
FSLR made a Gap up move above the level of 90 in the month of August after the passage of the Inflation Reduction Act. The stock never looked back and has rallied 65%.
The stock is a leadership stock and continues to be buy on declines. The buy area is near 142-145. The market has changed and now one should look to buy strong stocks on dips near support.
Enphase Energy ENPH – Leadership stock
Enphase Energy is a great fundamental play on clean energy. The stock has been nicely trending up with 100 dma as support. The stock looks like a great buy as it bounces today from 100 dma
Barrick Gold GOLD is set to move higher
Barrick Gold Gold first formed resistance at 16.55 and then moved past it. After doing that, it’s consolidating above it – generally considered bullish. The stock is a buy and can surprise on the upside.
GE – The stock in the Bull market
The pick-up in the Aviation sector and strong earnings are helping the stock. GE which earlier was struggling below the resistance has now breached both horizontal as well as 200 dma. No wonder the stock bounced on a pullback near 200 dma. The stock is a buy on declines between 76 and 80 for the target of 100+
TJX TJ Maxx is a buy on declines
As you can see in the chart above, TJX nicely has trended upward once it moved past 100 dma. The stock has rallied from 60 levels to 80 levels. With this move, the stock has broken out to a new high and attained leadership status.
This is not a market to chase stock near highs and hence one should look to buy on declines between 70-75 levels.
Amgen AMGN is a buy on declines
Amgen is a dividend play. The company has a diversified drug portfolio and generates huge cash flow and doles out hefty dividends. It is a stock of choice of large money managers as you can see in the chart below. The stock offers a dividend yield of 3.2% at the current market price and is a buy on decline near 260 levels.
Ulta makes a new high and becomes a buy candidate
Ulta has turned out to be recession+inflation proof stock. The masks are off and the demand for beauty care products and services is high. In fact, stocks like Ulta shine during the recession. Year to date, Ulta revenues are up 76% and EPS is at $17.35. The stock made a new high and pulled back to retest and is bouncing back from 50 dma. The stock is a buy.
This is not a complete list. I will add more stocks to the list with an excel sheet.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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